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HomeMy WebLinkAboutOrdinances Book 16, Page 237, No Ordinance Number237 . rU, r �] '.I II BOND ORDINANCE Va AN ORDINANCE OF THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($125,000.00) OF CITY OF PADUCAH PARKING FACILITIES REVENUE BONDS, UNDER THE PROVISIONS OF SECTION 82.050 AND SECTIONS 58.010 THROUGH 58.140, INCLUSIVE (CHAPTER 58), OF THE KENTUCKY REVISED STATUTES, FOR THE PURPOSE OF PAYING THE COST OF ACQUIRING AND CONSTRUCTING CERTAIN AUTOMOBILE OFF-STREET PARKING FACILITIES FOR THE CITY; PROVIDING FOR THE COMBINING AND CONSOLIDATING OF SAID OFF-STREET PARKING FACILITIES WITH THE EXISTING ON -STREET (CURB -LINE) PARKING FACILITIES OF THE CITY, AS A SINGLE, REVENUE-PRODUCING PUBLIC PROJECT, UNDER THE AFORESAID STATUTES, FOR THE CONTROL OF TRAFFIC AND RELIEF OF CONGESTION ON THE STREETS AND PUBLIC WAYS; SETTING FORTH THE TERMS AND CONDITIONS UPON WHICH SAID $125,000 OF REVENUE BONDS ARE TO BE AND MAY BE ISSUED AND OUTSTANDING; AND PROVIDING FOR THE COLLECTION, SEGREGATION AND DISTRIBUTION OF THE REVENUES OF SAID COMBINED AND CONSOLIDATED PUBLIC PROJECT. WHEREAS, the City of Paducah, in McCracken County, Kentucky, has heretofore installed certain on -street parking facilities, consisting of on -street (curb -line) parking meters, and has established regulations for their use and operation in order properly to regulate and control traffic upon the congested streets within said City, and in connection with such establishment, use and operation, said City imposes a fee for parking by motor vehicles on such congested streets and thereby derives revenues from such on -street parking meters; and WHEREAS, said City is in the process of acquiring and constructing certain off-street parking facilities, consisting of a certain off-street parking lot located at the southwest corner of the intersection of Kentucky Avenue and South Third Street in said City, with space for approximately 130 automobiles, on which lot certain improvements are to be constructed and parking meters are to be installed, and WHEREAS, existing traffic conditions upon the commercial streets of said City necessitate that the existing parking facilities of the City be added to, extended and improved so as to further relieve traffic and street congestion, prevent abuse of parking privileges, increase parking privileges, accelerate the free movement of traffic, and as a part of the municipal traff system promote the public safety, convenience and welfare; and 238 WHEREAS, it is the desire and intent of this Board of Commissioners at this time.to adopt this Ordinance authorizing and providing for the issuanc of its Revenue Bonds in the amount of $125,000 for the purpose aforesaid, and to set forth the restrictions and conditions upon which said Revenue Bonds and any additional Bonds ranking on a parity therewith are to be and may be issued and outstanding and to express special covenants with respect to the operation of said project and providing for the rights of the holders of said Bonds and the coupons appertaining thereto and for the enforcement thereof, NOW THEREFORE, THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, DOES ORDAIN AS FOLLOWS: SECTION 1. DEFINITIONS. As used in this Ordinance, unless the context requires otherwise: A. The terms "public parking facilities construction project," or "parking construction project," or "construction prokect," shall be used synonymously and shall be deemed to refer specifically to the acquisition and construction of new off-street parking facilities, consisting of the acquisition and improvement of an off-street parking site located at the southwest corner of the intersection of Kentucky Avenue and South Third Street in said City, as described herein. B. The terms "public project," or "public parking facilities project," or "project," shall be used synonymously in this Ordinance and shall be deemed to refer to the existing on -street (curb -line) parking facilities and the new off-street parking facilities of the City (now being acquired and constructed), which facilities are all herein ordered to be combined and consolidated and operated as a single, combined and consoli- dated revenue-producing public parking facilities project, together with all future extensions, additions and improvements to said project, or to any part thereof. C. The "Bonds" or the "Bonds of 1967" means any of the Bonds of the original authorized issue of ,$125;000 -of Bonds, specifically authorized by this Ordinance. D. "Parity Bonds" means bonds issued in the future, in addition to the $125,000 of Bonds herein specifically authorized, which Bonds issued in the future will, pursuant to the provisions of this Ordinance rank on a basis of parity with said $125,000 of Bonds, as to priority, security and source of payment, and does not mean Bonds which will rank inferior to the security and source of payment of said $125,000 of Bonds. 239 SECTION 2. COMBINING AND CONSOLIDATING THE OFF-STREET PARKING FACILITIES AND THE ON -STREET PARKING FACILITIES OF THE CITY INTO A SINGLE, PUBLIC PROJECT; AUTHORITY; PURPOSE. That the existing on -street parking facilities of the City, as the same presently exist, and the proposed new off-street parking facilities of the City, now being acquired and constructed, all as defined above as the "public parking facilities project," and as may from time to time hereafter be extended and improved, are hereby combined and consolidated into a single public parking facilities project, which is hereby declared to constitute a single, combined and consolidated revenue-producing public project within the meaning and application of Section 82.050 and Sections 58.010 to 58.140, inclusive, of the Kentucky Revised Statutes, as interpreted by the Court of Appeals of Kentucky in the same of Skidmore v. City of Elizabethtown, Ky., 291 S.W. 2d 3. The Bonds herein authorized shall be issued for the purpose of defraying the cost of acquiring and constructing said construction project; and so long as any of said Bonds of 1967 or any parity bonds remain outstanding, said combined and consolidated public project shall be owned, controlled, operated and maintained on a combined and consolidated basis for the security and source of payment of said Bonds of 1967. SECTION 3. Acquisition CONTRACT AND CONSTRUCTION WORK APPROVED; MRK AUTHORIZED. The Board of Commissioners hereby authorizes,approves, ratifies and confirms its previous action in negotiating a contract for the purchase of said proposed off-street parking property for a price of $90,000, approves the action of the City officials in entering into a formal contract providing for the leasing by the City of said property from the Urbam Renewal Agency for a price of $1.00 per month until such time as said purchase is consummated at said price of $90,000, and further authorizes, approves, ratifies and con- firms the previous arrangements made by the City for the construction of a portion of the improvements to said off-street parking facilities through employees of the City by "force account." SECTION 4. AUTHORIZATION OF BONDS. For the purpose of defraying the costs (not otherwise provided) of the acquisition and construction of said parking construction project, including preliminary expenses, the cost of said land acquisition, the cost of parking meters to be installed thereon, limestone base, concrete sidewalks, curbs, gutters and driveways, asphalt surfacing, capitalized interest during con- struction, legal and administrative costs, fee of Fiscal Agent, publication costs and all incidental expenses, there are hereby authorized to be presently issued and sold One Hundred Twenty-five Thousand Dollars $125,000) of City of Paducah Parking Facilities Revenue Bonds, dated July 1, 1967, in the denomination of $1,000 each, and numbered from 1 to 125, inclusive. Said Bonds shall bear interest from July 1, 1967, payable semi- annually on the first days of January and July in each year and shall bear interest at a rate or rates to be determined by resolution to be adopted by the Board of Commissioners of the City at the time or times of the public sale of said Bonds, not to exceed a net maximum interest cost of six percent (6%) per annum, as hereinafter more specifically provided. The numbering, maturities and principal and interest requirements on said $125,000 of bonds, based upon a tentatively estimated interest rate of five percent (5%) per annum, are as follows: SECTION 5. PROVISIONS AS TO PLACE OF PAYMENT, PRIOR REDEMPTION AND EXECU Both principal and interest on said Bonds shall be payable at the main office of Citizens Bank & Trust Company, Paducah, Kentucky, in lawful money of the United States of America. Bonds of said authorized issue maturing on or after January 1, 1974, numbered 22 to 125, inclusive, shall be subject to redemption by said City prior to maturity, on any interest payment date falling on or after January 1, 1973, in accordance with the terms and provisions contained in the bond form set out in Section 6 below. Tentatively Estimated Total Interest Principal Maturity, Requirements and Interest January 1, Principal Numbering 5% Requirements 1968 -0- --- $ 3,125 $ 3,125 1969 $ 4,000 1-4 6,250 10,250 1970 4,000 5-8 6,050 10;050 1971 4,000 9-12 5,850 9,850 1972 4,000 13-16 5,650 9,650 1973 5,000 17-21 5,450 10,450 1974 5,000 22-26 5,200 10,200 1975 5,000 27-31 4,950 9,950 1976 5,000 32-36 4,700 9,700 1977 6,000 37-42 4,450 10,450 1978 6,000 43-48 4,150 10,150 1979 6,000 49-54 3,850 9,850 1980 6,000 55-60 3,550 9,550 1981 7,000 61-67 3,250 10,250 1982 7,000 68-74 2,900 9,900 1983 7,000 75-81 2,550 9,550 1984 8,000 82-89 2,200 10,200 1985 8,000 90-97 1,800 9,800 1986 9,000 98-106 1,400 10,400 1987 9,000 107-115 950 9,950 1988 10,000 116-125 500 10,500 SECTION 5. PROVISIONS AS TO PLACE OF PAYMENT, PRIOR REDEMPTION AND EXECU Both principal and interest on said Bonds shall be payable at the main office of Citizens Bank & Trust Company, Paducah, Kentucky, in lawful money of the United States of America. Bonds of said authorized issue maturing on or after January 1, 1974, numbered 22 to 125, inclusive, shall be subject to redemption by said City prior to maturity, on any interest payment date falling on or after January 1, 1973, in accordance with the terms and provisions contained in the bond form set out in Section 6 below. 241 Said Bonds, and the interest coupons appertaining thereto, shall be executed on behalf of said City pursuant to the facsimile signature law of Kentucky, KRS 61.390, with the duly authorized reproduced facsimile sig- nature of the Mayor of said City; the reproduced facsimile of the Corporate Seal of said City shall be imprinted thereon, attested by the manual signa- ture of the City Clerk; and the interest coupons attached to said Bonds shall be executed with the reproduced facsimile signatures of said Mayor and of said City Clerk, which officials, by the execution of appropriate certifications, shall adopt as and for their own proper signatures their respective facsimile signatures on said Bonds and coupons. SECTION 6. BOND FORM. That said Bonds and coupons shall be in substantially the following form: UNITED STATES OF AMERICA COMMONWEALTH OF KENTUCKY COUNTY OF McCRACKEN CITY OF PADUCAH PARKING FACILITIES REVENUE BOND No. $1,000 KNOW ALL MEN BY THESE PRESENTS: That the City of Paducah, in the County of McCracken, in the Commonwealth of Kentucky, acknowledges itself to owe, and for value received, hereby promises to pay to the bearer hereof, solely from the special fund hereinafter identified, the sum of ONE THOUSAND DOLLARS On the first day of January, 19 and to pay interest on said sum from the date hereof at the rate of percent (_%) per annum, payable semi-annually, on the first days of January and July in each year until paid, except as the provisions hereinafter set forth with respect to prior redemption may be and become applicable hereto, such interest as may accrue on and prior to the maturity of this Bond to be paid upon presentation and surrender of the annexed interest coupons as the same severally mature, both principal and interest being payable, without deduction for exchange or collection charges, in lawful money of the United States of America, at the main office of Citizens Bank & Trust Company, Paducah, Kentucky. This Bond is one of a duly authorized Series of Bonds in the amount of One Hundred Twenty -Five Thousand Dollars ($125,000), numbered consecutively, from 1 to 125, inclusive (this Bond and said authorized issue and the apper- taining coupons being hereinafter sometimes referred to collectively as "the 242 Bonds" or "these Bonds"), issued by said City for the purpose of defraying the costs of the acquisition and construc tion of new off-street parking facilites, consisting of the acquisition and improvement of an off-street parking site in said City. These Bonds are issued pursuant to the provisions of Section 82.050 and Chapter 58 (Sections 58.010-140) of.the Kentucky Revised Statutes and pursuant to an Ordinance.of,the City authorizing said Bonds, which Ordinance ordered that said new off-street parking facilities be combined and consolidated with the existing on -street (curb-line),parking facilities of the City into a single public project and further provided that so long.as these Bonds are outstanding, said on -street and off-street parking facilities shall,be operated as.a single, combined and consolidated revenue-producing public project. Bonds numbered 22 to 125, inclusive, maturing on or after January 1, 1974, of these Bonds as may be outstanding from time to time, are subject to redemption by said City prior to maturity, in whole or from time to time in part, in the inverse order of their maturities (less than all of a single maturity to be selected by lot), on any interest payment date falling on or after January 1, 1973, upon payment of face amount plus all accrued interest evidenced by interest coupons maturing on and prior to the redemption date, plus a redemption premium expressed in terms of the amount of premium per $1,000 Bond, as follows: $30.00 if redeemed on or after January 1, 1973 and on or before January 1, 1978; $20.00 of redeemed thereafter and on or before January 1, 1983; and $10.00 if redeemed thereafter and prior to final maturity. In the event that any of these Bonds are called for redemption as aforesaid, notice thereof identifying the Bonds to be redeemed shall be given by publication at least once not less than thirty days prior to the redemption date, in a newspaper of general circulation throughout Kentucky. All of said Bonds as to which said City reserves and exercises the right of redemption and as to which notice as aforesaid shall have been given, and for the retirement of which, upon the terms aforesaid, funds are duly provided, will cease to bear interest on the redemption date. Notice of such redemption may be waived with the written consent of the holder(s) of the Bond(s) so called for redemption. It is provided in and by said Ordinance that additional bonds ranking on a parity with these Bonds, may be issued and outstanding, and these Bonds, together with any such bonds ranking on a parity therewith that may be issued and outstanding under the conditions and restrictions of said 243 Ordinance, are and will continue to be payable from and secured by an exclusiv pledge of a fixed portion of the gross income and revenues to be derived from the operation of said combined and consolidated public parking facilities project, which fixed portion of said income and revenues shall be sufficient to pay the principal of and interest on these Bonds and on any additional bonds ranking on a parity therewith as may be issued and outstanding under the conditions and restrictions set out in said Ordinance, as and when the same become due and payable, and which shall be set aside as a special fund for that purposeand identified as the "City of Paducah Public Parking Facilities Project Bond and Interest Redemption Fund of 1967." These Bonds do not constitute an indebtedness of the City of Paducah within the meaning of any constitutional or statutory provisions or limitations. Said City covenants that so long as these Bonds remain outstanding, said combined and consolidated public parking facilities project will be continuously operated as a revenue-producing undertaking, and that the City will fix and charge such rates for the services and facilities of said project so that the income and revenues therefrom will be sufficient to pay all of said Bonds and the interest thereon as the same become due and to pay the cost of operation and maintenance of said project and to provide for the depreciation of said project. This Bond is fully negotiable and shall pass merely by delivery. This Bond is exempt from taxation in the Commonwealth of Kentucky. It is hereby dertified, recited and declared that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of these Bonds, have existed, have happened and have been performed in due time, form and manner as required by law, that the amount of these Bonds, together with all other obligations of said City, does not exceed any limit prescribed by the Constitution or statutes of the Commonwealth of Kentucky, and that a sufficient portion of the gross income and revenues of said combined and consolidated public parking facilities project has been pledged to.and will be set aside into the aforesaid special fund by said City for the prompt payment of the principal of and interest on this Bond and on all other Bonds ranking on a parity therewith that may be issued and outstanding. IN WITNESS WHEREOF, said City of Paducah, in the Commonwealth of Kentucky, has caused this Bond to be executed on its behalf with the duly authorized, reproduced facsimile signature of its Mayor and the reproduced facsimile of its corporate seal to be imprinted hereon, attested by the manual am 244 signature of its City Clerk, and the coupons hereto attached to be executed with the duly authorized reproduced facsimile signatures of said Mayor and said City Clerk, and this Bond to be dated the first day of July, 1967. CITY OF PADUOAH, KENTUCKY By (Facsimile Signature) Attest: Mayor City Clerk (Facsimile City Seal) (FORM OF COUPON) BOND NO. COUPON NO. $ Unless .the Bond to which this.coupon appertains is redeemable _ and accordingly shall have been theretofore called for prior redemption and payment of the redemption price duly made or provided for, On the.first day of , 19 The City of Paducah, Kentucky, will pay to the bearer -the amount shown hereon, without deduction for exchange or collection charges, out of its "City of Paducah Public Parking Facilities Project Bond and Interest Redemption Fund of 1967," at the main office of Citizens Bank & Trust Company, Paducah, Kentucky, as provided in and being interest then due on its $1,000 City of Paducah Parking Facilities Revenue Bond, dated July 1, 1967, numbered CITY OF PADUCAH, Kentucky BY Mayor ATTEST: (Facsimile Signature) City Clerk SECTION 7. SALE OF BONDS. The entire $125,000 of Bonds authorized by this Ordinance shall be offered for sale, which shall be publicly advertised,' upon.the basis of sealed, competitive bids, which shall be -publicly opened and acted upon by.the Board of Commissioners; to that end, the.Mayor and the City Clerk are authorized to sign an appropriate form of Notice soliciting purchase bids and to cause the same to be published in conformity with Chapter 424 of the Kentucky Revised Statutes, at least one time, not less than 7 days nor more than 21 days, prior to the designated sale date, (a) in THE PADUCAH SUN -DEMOCRAT, which is the newspaper having the largest bona fide circulation which is published in the City of Paducah, Kentucky, and is the newspaper meeting the requirements of 245 KRS 424.110-120 for publication in which official publications of the City of Paducah are required to be published, (b) in THE COURIER_JOURNAL, a daily newspaper published in Louisville, Kentucky, and having general circulation throughout the Commonwealth of Kentucky, and (c) in THE BOND BUYER, a financial publication in the City and State of New York and of general circulation among bond issue purchasers. The published Notice shall be in the customary form or forms, shall identify the Bonds offered for sale, shall designate a day and hour for the receiving and public opening and consideration of purchase bids, which time will be the time of a regular, adjourned regular, or called, special meeting of the Board of Commissioners, as may be determined by the Board or by the Mayor; shall require that bids be for all of said Bonds and be upon terms of cash at a price not less than $122,500.00 (98% of par) for'said $125,000 of Bonds plus accrued interest;: shall permit bidders to stipulate one or more interest coupon rates in multiples of 1/8% or 1/10%, not exc.eeding four dif- ferent rates, repitition of.a rate not to be.considered a different rate, with no more than 2%.differential between the highest and the lowest interest rates bid. All bonds of the same maturity shall bear the same and a. single. interest coupon rate from the date ther.eo.f.to maturity,.and interest becoming due on any interest payment date may not.be..represented by more than one . coupon on any Bond; provided that.no.b.ids may exceed the le'gal.maximum interest rate or net interest cost of six percent (6%) per annum. BIDDERS SHALL be•required to deposit a good faith check by cashier's check or certified check, in the minimum amount of two percent (2%) of the face amount of the Bonds offered for sale. The City shall reserve the right, in its discretion, to determine the best bid or bids, to waive any informality and to reject any or all bids. The Mayor and the City Clerk are additionally.authorized, in connection with such sale, to sign, cause to be reproduced in mimeographed, printed, or other multiple copy form, and to supply any interedted party upon request, the Official Terms and Conditions of sale of Bonds, giving a more detailed description of the Bonds and setting forth terms and condi- tions calculated to bring about uniformity in bidding. Standard Bid Forms shall be required. Suggested forms of a "Notice of Bond Sale," the "Official Terms and Conditions of Sale of Bonds," and the "Bid Form," having been prepared and submitted by bond counsel, and the same having been examined by the Board 246 of Commissioners and found to be in order, the same are hereby approved and may be used for the purpose of this Section. SECTION 8. DISPOSITION OF BOND PROCEEDS That upon the sale, delivery of and payment for said $125,000 of Revenue Bonds by the successful purchaser, the proceeds of said Bonds shall forthwith and simultaneously be applied as follows: No A. There shall be taken out of the proceeds of said sale and deposited in the Sinking Fund hereinafter created, an amount equal to all accrued interest collected from the successful purchaser of said Bonds, representing accrued interest from July 1, 1967, to the date of delivery of the Bonds. B. There shall be paid out of such proceeds the fee to which Stein Bros. & Boyce, Inc., Starks Building, Louisville, Kentucky 40202, is entitled under its fiscal agency agreement with the City, for its services as Fiscal Agent in connection with the issuance of said Bonds. C. The entire remaining proceeds of the sale of said Bonds shall be devoted exclusively toward defraying the costs of said parking facilities construction project hereinbefore defined. To the extent that the City shall have found it necessary and possible to expend funds for various items of construction costs relating to such construction project, as defined herein, prior to the issuance, sale and delivery 6f said Bonds, through force account or otherwise, the aggregate of all of such expenditures (but not to exceed an amount to permit the sum of at least $90,000.00 of such bond issue proceeds to be earmarked for the'cost of acquiring off-street parking site as set out herein) shall be reimbursed to said City from the proceeds of the sale of the Bonds hereby authorized, upon orders of the Board of Commissioners of the City. Pending expenditure of the remaining proceeds for the purchase price ($90,000.00) of the aforesaid off-street parking site and of the bal- ance of the proceeds for the remaining costs of said construction project, as defined herein, such remaining proceeds shall be deposited in a special Acquisition and Construction Account at Citizens Bank & Trust Company, Paducah, Kentucky, said Account at said Bank to be called "City of Paducah Public Parking Facilities Project Acquisition and Construction Account of 1967." Said Bank shall invest for the benefit of said Account such portion of said Account, as is designated by the Mayor or the Board of Commissioners of the City, in United States Government obligations or in Certificates of Time Deposit of said Bank, maturing in from six to nine months from date of 247 investment (as designated by the Mayor or the Board of Commissioners of the City), and any of such funds on deposit in said Bank or invested in such Cer- tificates of Time Deposit, to the extent that same are in excess of the amount insured by the FDIC, shall be earmarked and secured by a pledge of an equiv- alent amount in current fair market value (exclusive of accrued interest) of United States Government obligations until expended. Interest earned on any such investments shall be credited to said Acquisition and Construction Account and applied to the purposes thereof. Payment from said Acquisition and Construction Account for the cost of acquiring said off-street parking site, pursuant to a contract between the Urban Renewal and Community Development Agency of Paducah, Kentucky, and the City of Paducah, Kentucky, to be entered into and dated July 21, 1967 (and which is hereby ratified and confirmed), shall be made at a time and in such manner, as determined by the Mayor, the Corporation Counsel, and/or other appropriate City officials, as to enable said City to obtain recorded good marketable fee simple title to said off-street parking site simultaneously with the payment of said sum. Said off-street parking site referred to is located in the City of Paducah, Kentucky, and is more particularly described as follows: Beginning at the southwest corner of the intersection of Kentucky Avenue and South 3rd Street; thence in a southerly direction along the west property line of South3rd Street, 173.25 feet; thence at right angles and in a Westerly direc- tion 346.5 feet to a point in the East property line of South 4th Street; thence in a Northerly direction and along the west property line of South 4th Street 173.25 feet to the southeast intersection of South 4th Street and Kentucky Avenue; thence at right angles and along the south property line of Kentucky Avenue in an Easterly direction 346.5 feet to the point of beginning. Apart from the purchase of said off-street parking facilities site, as aforesaid, which purchase has been agreed upon as set out in the aforesaid Contract between the City and the Urban Renewal and Community Development Agency of Paducah, Kentucky, all other costs pertinent to said construction project as defined herein shall be paid out of the aforesaid Acquisition and Construction Account only upon vouchers signed by the City Engineer, provided all checks drawn against said Account shall be signed by the Senior Treasurer and countersigned by the City Manager, and accompanied by such voucher before being honored by the aforesaid Bank. The aforementioned officials are hereby authorized to execute such checks from time to time, in the necessary amounts, upon the aforesaid certification being executed by the City Engineer and pre- sented to the aforesaid officials, without the necessity of any further meetings, authorizations, ordinances or motions by the Board of Commissioners. 248 Such checks shall be fully negotiable, and the aforesaid Bank shall be authorized to honor and pay the same, if said certification of the City Engineer is attached thereto, provided said Bank assumes the responsibility for the validity of all signatures and the validity and propriety of all endorsements, or if all signatures and endorsements to it are guaranteed by another FDIC bank. Pending disbursement for the authorized purposes, the proceeds of the Bonds issued pursuant to this Ordinance and of said Acquisition and Construction Account shall be subject to a first and paramount lien and charge in favor of the holder(s) of the Bonds, and for their further security. After the Board of Commissioners certifies that the acquisition and construction of said construction project has been completed and paid for (including the cost of acquisition of said off-street site), any'surplus then remaining'shall either be transferred to the Reserve Fund of the Sinking Fund hereinafter provided, or shall be transferred to the Depreciation Fund herein- after provided and used for the construction of further extensions, additions or improvements to said combined and consolidated public project, in accordance with the orders of the governing body of the City, without the necessity of any further certification by anyone. SECTION 9. CREATION OF SPECIAL FUNDS. From and after the first day of the month following the delivery of the Bonds authorized herein, said combined and consolidated public parking facilities project shall be operated on a calendar year basis commencing on January first of each year and ending on December 31st of the same year, and on that basis the gross income and revenues of said project.shall be set aside monthly in a separate and special fund to be designated as the "City of Paducah Public Parking Facilities Project Revenue Fund of 1967," herein- after sometimes called the "Revenue Fund", which shall be maintained at Citizens Bank & Trust Company, Paducah, Kentucky, and the revenues of said combined and consolidated public parking facilities project so set aside shall then be used and apportioned monthly as follows A. SINKING FUND. There is hereby created a special account or fund to be known as the "City of Paducah Public Parking Facilities Project Bond and Interest Redemption Fund of 1967" ( hereinafter sometimes called the "Sinking Fund"), into which there shall be set aside out of the proceeds of the sale of the 249 Bonds an amount equal to the collected accrued interest received from the purchaser of the Bonds, representing accrued interest from July 1, 1967, to the date of delivery and payment for said Bonds, as provided in Section 8 above, and there shall also be set aside into said Sinking Fund, from the gross income and revenues in the Revenue Fund, beginning in the month following the month in which this Ordinance is enacted, sums in each mon th not less than: (1) an amount equal to one-fifth (1/5) of the interest becoming due on the next succeeding interest due date; plus (2) beginning in January, 1968, an amount equal to one=tenth (1/10) of the principal of all Bonds maturing on the next succeeding January 1. Provided, however, that all surplus'sums deposited in said Sinking Fund in excess of the requirements of semi-annual interest payments and annual principal payments falling due in any ensuing period of twelve months, shall -.constitute and accumulate within said Sinking Fund as a "City of Paducah Public Parking Facilities Project Reserve Fund," hereinafter sometimes called the ' "Reserve Fund," or the "Sinking Fund Reserve," hereby created, until such time as the balance in said Sinking Fund Reserve is equal to not less than TWICE the masimum amount required in any year for principal and interest requirements on the outstanding Bonds; and.thereafter, the aforesaid monthly deposits referred to in (1) and (2) above may be reduced to: (a) an amount equal to one-sixth (1/6) of the interest becoming due on the next succeeding interest due date; and (b) an amount equal to one -twelfth (1/12) of the principal of all Bonds maturing on the next succeeding January 1, but subject to resumption of the aforesaid monthly deposits equal to 1/5 of the maturing (6 months) interest and 1/10 of the maturing (twelve months) principal set out in (1) and (2) of this Section, whenever authorized dis- bursements from the Sinking Fund Reserve shall reduce the balance therein below the stipulated level, the same to be continued for such period of time as may be required to restore the balance therein to such stipulated level. It is hereby determined that for the purpose of the foregoing calculations, the amounts required for principal and interest on said Bonds are the amounts set out in the statement of (estimated) principal and inter- est requirements in the table contained in Section 4 of this Ordinance, if said One Hundred Twenty-five Thousand Dollars ($125,000) of Bonds are sold to bear interest at the rate of five percent (5%) per annum. If the interest rate or rates actually established at the sale are greater or less than the tentatively anticipated interest rate of five percent (5%) per annum, said requirements (as set out in the aforementioned schedule) on which said cal- culations are based, shall be automatically increased or reduced accordingly. As and when additional bonds are issued ranking on a parity with the Bonds herein authorized under the conditions and restrictions hereinafter set forth, provision shall be made for additional payments into the Sinking Fund so as to pay the interest on and the principal of such additional parity bonds as and when the same become due, and for increasing the Reserve Fund within a period of five years from the date of issuance of such additional parity bonds, to an aggregate amount equal to the maximum amount-thereafter becoming due with respect to all outstanding Bonds, including such parity bonds, in any period of twelve months ending on January 1 of any year. Said Sinking Fund and said Reserve Fund shall be used solely and only for, and are hereby pledged for, the payment of the interest on and principal of the Bonds hereby authorized and of any additional parity bonds herein permitted to be issued. The amount by which any funds on deposit in said Sinking Fund Reserve are in excess of said prescribed minimum reserve to be accumulated and maintained, may be held in said Fund as additional reserve for the same purpose, and unless all Bonds payable from said Sinking Fund at the-time out- standing are to be then retired, only such part of said-Sinking Fund Reserve shall be used to purchase or redeem Bo•.>ds in advance of maturity, as may be in excess of the prescribed minimum Reserve plus the interest and the -prin- cipal scheduled to mature within the succeeding twelvemonths on all Bonds which by their terms are payable from said Sinking Fund. No further payment need be made into said Sinking Fund and Reserve Fund whenever and so long as such amount of the Bonds shall'-.have been retired that the amounts then held in such funds are equal to the entire amount of the interest and principal (and redemption premium, if any) that will be pay- able to and at the time of the retirement or maturity of all of the.Bonds then remaining outstanding. Such payments into said Sinking Fund(and said Reserve Fund shall. he made in equal monthly installments on the first day of each month, except that -when the first day of any month shall be on a Sunday or a legal holiday, then such payments shall be made on the 'next succeeding secular day.. In the event that the income and revenues during any month are. inadequate to make the required payments into said Sinking Fund and.Reserve Fund, the deficiency-shall be made up and paid as aforesaid from:,the first available'income and revenues thereafter received, and same shall-be in addition to payments otherwise provided to be made in such succeeding month or months. 251 '9 A All moneys in said Sinking Fund and in said Reserve Fund shall be deposited in Citizens Bank & Trust Company, Paducah, Kentucky. Said Bank shall invest for the benefit of said Sinking Fund (and Reserve Fund) such portion thereof as is designated by the governing body of the City; in United States Government obligations or in Certificates of Time Deposit of said Bank maturing as same will be needed for meeting interest and/or principal payments, and any of such funds on deposit in said Bank or invested in such Certificates of Time Deposit (inexcess of the amount insured by the FDIC) shall be earmarked and secured by a pledge of an equivalent amount (exclusive of accrued interest) of United States Government obligations, or Bonds of the issue herein authorized, until expended. Interest earned on any such investments shall be credited to the Sinking Fund (or the Reserve Fund portion thereof, as the case may be) and applied to the purposes thereof. Withdrawals shall be made from said Reserve Fund and transferred to the Sinking Fund if and to any.extent required at any time to prevent a default in the payment of principal of or interest on any Bonds which by their terms are payable from the Sinking Fund; and, if necessary, securities held as investments in said Reserve Fund shall be converted into cash for such purpose, but no withdeawals shall be made for any other purpose, and the City hereby irrevocably pledges all moneys and securities in the Reserve Fund for such specified purposes only. In the event any such permitted withdrawals are made. the deficiency in such fund shall be restored as soon as revenues are available. The balance of the income and revenues then remaining shall be set aside for operation and maintenance and for depreciation as hereinafter prov B. OPERATION AND MAINTENANCE FUND There shall be and there is hereby created a fund known as the "City of Paducah Public Parking Facilities Project Operation and Maintenance Fund of 1967," into which there shall be deposited in each month an amount equal to ninety percent (90/) of the balance of the income and revenues of said public project in the Revenue Fund after,the aforementioned provisions have been complied with. From this Operation and Maintenance Fund, all costs of operating, maintaining and insuring said project shall be paid. If there shall be accumulated in said Operation and Maintenance Fund, after payment in full of all current costs of operation, maintenance and insurance, a sum in cash equal to all anticipated and estimated costs of operating and maintaining said combined and consolidated public parking facilities project for the ensuing period of three months commencing upon 252 the first day of the calendar month following the month in which such esti- mate is made.- (which amount shall be not less than the actual costs::of operating and maintaining said project for the three months period ending on the last day of the calendar month preceding the month in which such estimateis made), no further payments shall thereafter be required to be made into said Operation.and Maintenance Fund except to the extent sufficient to pay the current costs of operation, maintenance and insurance in each month, so that said accumulation may be preserved and maintained as an -Emergency Fund. All funds in the Operation and Maintenance Fund shall -be kept apart from all other municipal funds and shall be deposited, secured and/or invested in the same manner as herein provided for the deposit and security of the Sinking Fund. Whenever such excess payments are no longer required to be made into said Operation and Maintenance Fund, the portion of the revenues in. excess of the amount required for current costs of operation, maintenance and insurance which would otherwise be so payable may, by order of the Board of Commissioners, be discontinued or same may be transferred to the Sinking Fund Reserve, and shall be so transferred so long as the minimum prescribed Reserve has not been accumulated and is not being maintained or has not been restored; or, when not so ordered or required to be transferred to such Sinking Fund Reserve, may be deposited in the Depreciation Fund, and shall be.deposited in said Depreciation Fund whenever and so long as the minimum required Depreciation Reserve has not been accumulated and/or is not being maintained. C. DEPRECIATION FUND. There shall be and there is hereby created.a fund known as the "City of Paducah Public Parking Facilities Project Depreciation Fund of 1967," hereinafter sometimes called ."Depreciation Fund," into which there shall be set apart and paid out of said "Revenue Fund" in each month the remaining ten percent (10%) of the balance of the annual income and revenues remaining in the Revenue Fund after the aforementioned provisions have been complied with. There shall also be deposited in this Depreciation Fund the proceeds from the sale of any equipment no longer usable or needed and the proceeds of any property damage insurance not immediately used to replace damaged or destroyed property. Whenever there shall have been accumulated in said Depreciation Fund the amount of $5,000 as a Depreciation Reserve, the subsequent monthly payments into said Fund may be discontinued and/or may by order of the Board of Commissioners be diverted into the Sinking Fund to be held as a part of the 253 Reserve Fund therein, which funds may then be used to redeem Bonds only after the aforementioned Reserve Fund shall have accumulated beyond the minimum amount hereinabove prescribed; provided,.however, that said monthly payments into the Depreciation Fund shall be resumed.whenever and so long as necessary to restore and maintain said Depreciation Reserve in the sum of $5,000.00. As and when additional parity bonds are issued, provision shall be made for additional payments into the Depreciation Fund, -and for increasing the Depreciation Reserve by continuing or resuming the aforesaid ten percent (10%) payments until there has been accumulated in said Fund an amount equal to 5,000/125,000 of the face value of all Bonds, including the additional Parity bonds, which will then be outstanding. All funds in the Depreciation Fund shall be kept apart from all other municipal funds and shall -be deposited, secured and/or invested in the same manner as herein provided for the deposit and security of the.Sinking Ful All funds in the Depreciation Fund shall, except as provided herein, be expended in balancing any depreciation -in said combined and consolidated public parking facilities project and in making new constructions,:extensions or additions to said project. Withdrawals and disbursements may be made from said Depreciation Fund and transferred to the Sinking Fund if and to the extent required in order to prevent default in the payment of the principal of or interest on any Bonds outstanding pursuant to this Ordinance and to restore any sums withdrawn from the Sunking Fund Reserve at any time, and to the extent of such requirements, said Depreciation Fund is hereby pledged for that purpose; provided, however, if any moneys -in said Depreciation Fund are so used, the same shall be restored as soon as possible, through the resumption of monthly payments from said "Revenue Fund" into. said Depreciation Fund.. The Board of Commissioners -hereby finds and determines that .the proportion of the aforesaid .cash revenues of..sa U public .project required :. herein to be set aside into the Operation -and Maintenance Fund is proper and sufficient for the operation and maintenance of said public project, and -that the remaining proportion of such balance as provided herein is sufficient for the purposes of said Depreciation Fund. . D. SURPLUS REVENUES. Whenever all specified and. -required transfers and payments into the special funds hereinbefore provided have been made, all prescribed reserves have been accumulated and are being maintained, and there is a balance in the 2 54 Revenue Fund in excess of the estimated amount required to be so transferred and paid into such special funds during the succeeding three months, such excess shall be deemed an& considered surplus revenues, and all or any part Of such excess may be paid into the Sinking Fund or into the Sinking Fund Reserve, or may be used, by order of the Board of Commissioners, to pay or finance the cost of extensions and improvements to said project, or for any lawful purposes related to traffic control and regulations. SECTION 10. PRIORITY AS TO DEPOSITS INTO VARIOUS FUNDS. The mdney in the Revenue Fund set out above shall be allotted and paid into the various funds herein created in the manner and on the basis of the priorities set out above. In the event that the income and revenues available in the Revenue Fund during any month are inadequate to make the required payments into any of the funds herein created, the deficiency shall be made up and paid from the -first available income and revenues thereafter received, and same shall be in addition to payments'otherwise provided to be made in the next succeeding month or months. SECTION 11. INSURANCE. It is hereby covenanted and agreed that so long as any of the Bonds hereby authorized are outstanding, the City will carry for the benefit of the holders of the Bonds adequate fire and windstorn insurance (with extended coverage) on any and all buildings and structures, if any, of said combined and consolidated public parking facilities project which are subject to loss through fire or windstown, will carry adequate public liability insurance, and will carry, for the benefit of the holders of the Bonds, insurance of the kinds and in the amounts normally carried by other municipalities or by private companies in the operation of similar properties in Kentucky. All moneys received for losses under any of such insurance policies, except public -liability, shall be paid into the Depreciation Fund, and such payments shall not reduce the amlunts otherwise required to be'paid into said Fund. _Disbursements of -such proceeds shall be made in the same manner and for the .same purposes as are other disbursements made from the Depreciation Fund; provided further that if, following any such insured loss, any prin- cipal or interest payment is due and there -are no other funds 'available for such payment, such insurance proceeds must be first applied to'the'defaulted Payment or.payments. SECTION 12. RATES AND CHARGES FOR SERVICES OF THE PROJECT. While the Bonds authorized hereunder, or any of them, remain outstanding and unpaid, the rates for all services and facilities rendered 255 by said project to said City and to its citizens, corporations, or others requiring the same, shall be reasonable and just, taking into account and consideration the cost of maintaining and operating the same and the proper and necessary allowances for depreciation thereof, the amounts necessary for the retirement of all Bonds and the accruing interest on all such Bonds as may be outstanding under the provisions of this Ordinance, and there shall be charged such rates and amounts as shall be adequate to meet the require- ments of the provisions of this Ordinance. SECTION 13. COVENANT TO MAINTAIN AND OPERATE THE PROJECT. that said City hereby covenants that so long as any of said Bonds or parity bonds remain outstanding, it will faithfully and punctually perform all duties with reference to said project required by the Constitution and laws of the Commonwealth of Kentucky, including the making and collecting of reasonable and sufficient rates for services rendered and facilities afforded, that it will maintain said project in good condition and continuously operate same, and that it will segregate the revenues of the project and make appli- cation thereof into the respective funds as provided by this Ordinance; and the City hereby irrevocably covenants, binds and obligates itself not to sell, lease, mortgage, or in any manner dispose of the ownership of the properties comprising said project, including any and all extensions and additions that may be made thereto, except as provided in Section 9C hereof, until all of the Bonds herein authorized on parity bonds permitted to be issued shall have been paid in full, both principal and interest. SECTION 14. PARITY BONDS. Said City hereby reserved the right and privilege of financing.. the initial completion of the parking facilities construction project and of financing future extensions, additions and improvements to said project by the issuance of additional bonds from time to time which will be payable from the income and revenues of said project and will rank on a parity with the Bonds herein authorized; provided that before any such additional parity bonds may be so issued for such latter purpose there shall have been procured and filed with the City Clerk a statement by an independent State Licensed Accountant, not in the regular employ of the City on a salaried basis, reciting the opinion, based upon necessary investigation, that the net income and revenues of said project for twelve (12) consecutive months out of the preceding eighteen (18) months, was equal to at least two and one-half (2-1/2) times the maximum amount of principal and interest require- ments scheduled to mature thereafter with respect to the total of the Bonds 256 then outstanding plus the additional parity bonds then proposed to be issued. "Net Income and Revenues," as herein used, are defined as gross income and revenues less operating expenses, which shall include salaries, wages, cost of maintenance and operation, materials and supplies, administra- tion and insurance, and all other items normally and regularly considered to be expended under recognized accounting practices, exclusive of allowances for depreciation. Prior to the issuance of any such additional parity bonds, contracts (secured by 100°/ performance bond) for the immediate construction or acquisi- tion of such extensions or improvements must have been entered into or will be entered into prior to the issuance of such ad ditional parity bonds. The interest payment dates for any such additional bonds shall be semi-annually on January first and July first of each year, and the principal maturities of such a(Vitional parity bonds shall be January first of any year in which any such principal is scheduled to become due. The additional parity bonds (sometimes herein referred to as bonds "permitted" to be issued) the issuance of which is restricted and conditioned by this Section, shall be understood to mean bonds payable from the income and revenues of said public parking facilities project, ranking on a parity with the Bonds herein specifically authorized, and shall not be deemed to include, nor to prohibit the issuance of, other obligations, the security and source of payment of which are subordinate and subject to the priority of the Bonds herein authorized or permitted to be issued. At the time of issuance of said additional parity bonds, all payments required by this Ordinance to be made in certain funds created herein shall be adjusted as heretofore provided. Except as provided in this Section, the City shall not, so long as any of the Bonds herein authorized or parity bonds are outstanding, issue any additional bonds payable from the revenues of said project, unless the lien or pledge of the revenues or other security to secure such additional bonds is made inferior and subordinate in all respects to the security of the Bonds hrein authorized and any parity bonds. The City expressly reserves the right I. to issue its bonds or other obligations payable from the revenues of the project and not ranking on a basis of equality and parity with the Bonds herein authorized, without any proof of previous earnings or net revenues; provided, however, that nothing in this Section is intended to or shall be construed as a restriction upon the ordinary refunding of the bonds herein authorized and such parity bonds. 257 SECTION 15. GENERAL COVENANTS. The City covenants, so long as any of the bonds herein authorized or bonds ranking on a parity therewith that may be issued are outstanding, as follows: a. It will at all times operate said public parking facilities project on a revenue-producing basis. B. It will at all times maintain said project in good condition through application of revenues accumulated and set aside for operation and maintenance as herein provided; and will make renewals and replacements as the same may be required through application of revenues accumulated and set aside into the Depreciation Fund. C. It will maintain all on -street or curb -line parking meters existing at the time of the issuance of the Bonds authorized herein and will not reduce the service rates prevailing at such time; subject, however, to the City's rights and duties under its police power to change the location of such on -street parking meters when made necessary by street relocations or by adjustments or readjustments of traffic regulations and controls. SECTION 16. RECORDS, ADULTS AND REPORTS. Insofar as consistent with the laws of Kentucky, said City agrees that so long as any of the Bonds hereby authorized remain outstanding, it will keep proper books of record and account separate from all other municipal records and accounts, showing complete and correct entries of all transactions relating to said public project, and that the holders of any of said Bonds shall have the right at all reasonable times to inspect the public project and all records, accounts and data of the City relating thereto. As soon as may be feasible after the clost of each fiscal year, and in any event not later than sixty (60) days thereafter, the City covenants that it will cause an audit of the financial affairs of the public project to be made by a Certified Public Accountant. Copies of the audit report shall be furnished to the original purchaser of said Bonds, upon request, and a copy of same shall be kept on file in the office of the City Clerk, where it will be subject to inspection at any reasonable time by or on behalf of any holder of outstanding Bonds or coupons. A condensation of the important facts shown by such report will be mailed to any such bondholder or couponholder upon request. The City also shall prepare and furnish to said original pur- chaser and to any bondholder requesting same, monthly earnings statements of the project, if mimeographed forms are furnished to the City for that purpose. 258 SECTION 17. SIGNATURES OF OFFICERS. If any of the officers whose signatures or facsimile signatures appear on the Bonds or coupons cease to be such officer before delivery of the Bonds, such signatures shall nevertheless be valid for all purposes the same as if such officers had remained in office until delivery, as provided in KRS 58.040 and in KRS 6.390. SECTION 18. ALL BONDS OF THIS ISSUE ARE EQUAL The Bonds authorized and permitted to be issued hereunder, and from time to time outstanding, shall not be entitled to priority one over the other in tht i application of the income and revenues regardless of the time, or times, of the: I issuance. SECTION 19. CONTRACTUAL NATURE OF ORDINANCE The provisions of this Ordinance shall constitute a contract between the City and the holders of the Bonds herein authorized to be issued, and after the issuance of any of the Bonds no change, variation or alteration of any kind, in the provisions of this Ordinance shall be made in any manner except as herei provided, until such time as all of said Bonds issued hereunder and the interest thereon have been paid in full; provided, however, that the holders of eighty percent (80%) in principal amount of the Bonds at any time outstanding shall hal the right to consent to and approve the adoption of resolutions, ordinances or other proceedings modifying or amending any of the terms or provisions containell in this Bond Ordinance, subject to the provisions that this Ordinance shall not be so modified or amended in any manner that may adversely affect the rights of holders of less than all of the Bonds then outstanding or to reduce the percentai of the number of holders whose consent is required to effect a further modifica'I tion; provided further that the governing body of the City may adopt an ordinanc for any purpose not inconsistent with the terms of this Ordinance and which shat not impair the security of the same or of the bondholders, for the purpose of curing any ambiguity, or of curing, correcting, or supplementing any defective or inconsistent provisions contained herein or in any Ordinance or other procee !� `! ings pertaining hereto. SECTION 20. BONDHOLDERS' REMEDIES. That any holder of said Bonds, or of any of the coupons, may, either at law or in equity, by suit, action, mandamus, or other proceedings, enforce and compel performance by said City and its officers and agents of all duties imposed or required by law or by this Ordinance in connection with the operatio of said public project, including the making and collecting of sufficient rates the segregation of the income and revenues and the application thereof in accordance with the provisions of this Ordinance. 259 If there by any default in the payment of the principal of or interest on any of said Bonds, then, upon the filing of suit by any holder of said Bonds or coupons, any court having jurisdiction of the action may appoint a Receiver to administer said public project on behalf of said City, with power to charge and collect rates and charges for the services and facilities provided by said public project sufficient to provide for the payment of any Bonds or obligations outstanding, the interest thereon, and the expenses of operation and maintenance, and to apply the income and revenues in accordance with the provisions of this Ordinance, and of the applicable statutes of Kentucky and to take such other action as may be appropriate for the protection of any such holder within the applicable legal provisions. SECTION 21. PROVISIONS IN CONFLICT REPEALED. That all ordinances, resolutions and orders, or parts thereof, in conflict herewith, are to the extent of such conflict, hereby repealed, and it is hereby specifically ordered and provided that any proceedings heretofore taken for the issuance of other bonds payable or secured in any manner by all or any part of the income and revenues of said public project, or any part thereof, and which have not heretofore been issued and delivered, are hereby revoked and rescinded, and none of such other bonds shall be issued and delive SECTION 22. SEVERABILITY CLAUSE. If any section, paragraph, clause, or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. SECTION 23. EFFECTIVE DATE OF ORDINANCE. This ordinance shall be introduced at a meeting of the Board of Commissioners and remain on file for at least one week for public inspection in the completed form in which it shall be put on its final passage and if adopted shall be in full force and effect ten days thereafter. Mayor Introduced by the Board of Commissioners July 11, 1967 Passed by the Board of Commissioners July 25, 1967 Recorded by Sarah Thurman, City Clerk, July 25, 1967